New Harmonized Code Requirement Coming March 1

February 24th, 2023 Comments off

Beginning March 1, 2023, all shipments to and passing through most countries in the EU will need Harmonized System tariff codes, or HS codes, included on customs forms. More detailed descriptions will be required, meaning general descriptions like “clothing” or “electronics” won’t be accepted. According to the USPS, reasons for the upcoming change are important because they “improve speed and efficiency of cross-border ecommerce” and “meet safety and security requirements, preventing delays, fines, and penalties for noncompliance.” The full list of countries impacted by this change can be found on the USPS website

What are HS codes?

HS codes are numerical values given to all goods shipped to countries outside the United States. These codes were created and assigned by the World Customs Organization (WCO); a full list of HS codes can be found on the WCO website. Let’s go through a set of HS codes as an example.

Say you’re shipping coffee to a customer, and the HS code is 090111. Here’s what the numbers within your HS code represent: 

  • 09 – The chapter, or first two digits, is used to identify your product’s category
  • 01 – The heading, or second two digits, is used to define your product’s attributes
  • 11 – The subheading, or last two digits, combines the chapter and heading of your product 

In this case, the chapter would be coffee, the heading might be decaffeinated and roasted, and the subheading would classify your product as coffee, decaffeinated and roasted. 

Acceptable vs. Unacceptable Descriptions 

Vague item descriptions on custom forms such as “gifts,” “clothing,” and even “none” will no longer be considered acceptable descriptions. It’s best practice to have accurate and specific product descriptions that clearly describe the items being traded. 

Unacceptable Acceptable
ClothesMen’s cotton shirts, girls’ leather vets, boys’ denim jackets
Fresh HerbsBasil, thyme, parsley 
Sanitary goods Detergent, toothbrush, towels 
GiftOne scented candle, remote-controlled car, silk scarf

Why do HS codes matter?

HS codes help customs offices and departments identify the contents of your package so the proper taxes and duties are applied. Adhering to the new guidelines can prevent your shipments from being held up at customs and/or returned to your business. Also, HS codes help bypass language barriers because items are classified uniformly and easily translated. 

GlobalPost HS Code resources

If you aren’t sure how to classify your product, our partner carrier, GlobalPost, will provide their customers with two free classification services: the On Demand HS Classification Tool and the free HS Code Fulfillment Service. 

The On Demand HS Classification Tool is a searchable database designed to shorten the amount of time spent finding a product’s HS code. This tool is perfect if your business ships a small number of international orders, as you can search for up to five free classifications daily. There are also no additional requirements to use this tool. 

The free HS Code Fulfillment Service takes the hassle out of finding the HS code. If your business is using GlobalPost for international shipping, GlobalPost will assign the HS code once your shipment reaches the GlobalPost warehouse as long as you have a description of your products. The same goes for customs forms. Shipments sent using GlobalPost don’t need printed customs forms, as GlobalPost will assign forms once a shipment arrives at their facility. 

The inclusion of HS codes being mandated for shipments to the EU may seem like additional work. However, HS codes can shorten the amount of time your shipment sits in customs. It also decreases the chance of returned shipments or the incorrect amount of taxes and duties being applied.

If your business ships a higher volume of international shipments, consider using GlobalPost as your carrier of choice. Using GlobalPost eliminates searching for HS codes on your own, as GlobalPost’s Free HS Code Fulfillment Service will apply HS codes to your shipments for you. For more information on the new mandate for HS codes, we recommend reaching out to trade experts and service providers or visiting the World Customs Organization (WCO) website. 

Note: This blog will be updated as we receive news regarding the new EU HS code requirements, so check back for new/additional information. 

Categories: USPS News Tags:

2023 USPS Rate and Service Changes

January 20th, 2023 Comments off
Learn more about the proposed 2022 USPS Peak Surcharges.

The United States Postal Service’s 2023 rate and service changes have been approved by the Postal Regulatory Commission (PRC), and the updates will take effect on January 22, 2023. We’re going to address all of the upcoming changes, so you’ll have time to adjust accordingly and prevent negative shipping experiences for your customers.

Important USPS 2023 rate and service changes

More detailed highlights of the upcoming changes are: 

  • Priority Mail® commercial rates will see an increase of 3.6%, keeping them below the rate of inflation
  • Priority Mail Express® will see an increase of 6.7%
  • First-Class Package Service will see an increase of 7.8%
  • Priority Mail service prices will see an increase of around 5.5%
  • USPS First Class Package International rates will see an increase of 6.2%
  • USPS Priority Mail International® will see an increase of 5.9%
  • USPS Priority Mail Express International® will see an increase of 5.9%
  • Zone 1, Zone 2, and Local have traditionally seen the same shipping rates. However, Local will now be combined with Zone 1, and Zones 1 and 2 will have individual rates 
  • The pricing for Parcel Select Ground won’t see any rate increases
  • Priority Mail Regional Rate Boxes® will no longer be available
  • All Canadian Zones will be combined into one pricing zone for USPS Priority Mail International
  • Commercial Base and Commercial Plus will be merged into one entity

Flat Rate Priority Mail changes

Flat Rate envelopes and boxes will be included in the 3.6% increase for Priority Mail services. USPS will continue offering Priority Mail Flat Rate envelopes and boxes through their website. Also, you’ll be able to order some of these supplies directly from your Stamps.com account. A comparison of the 2022 and 2023 rates can be found below. 

Local Zone changes

Previously, Local, Zone 1, and Zone 2 all had the same shipping rates. Moving forward, there will no longer be a Local Zone, and Zones 1 and 2 will have two different shipping rates. If your business ships to customers who live close by or in the same state, you’ll see the impact of this change. The changes will be more noticeable when you’re shipping to customers in Zone 2, which is a 51-150 mile radius. 

Regional Rate Boxes are being retired 

Regional Rate A & B Boxes, used for 15-20 pound shipments traveling a short distance, will be discontinued. If your business uses Regional Rate Boxes after January 23, 2023, USPS will accept your shipment, but the cost won’t be calculated in the same way Regional Rate Boxes were. For this reason, USPS recommends using these materials by January 22. Additionally, check the automation rules currently running on your Stamps.com Online account to ensure this service isn’t applied to any of your shipments. 

Priority Mail® Cubic will still be an option for shippers, as it has seen a rise in popularity, and sometimes even offers a lower rate than what was seen with Regional Rate Boxes. The biggest difference with Priority Mail Cubic is that supplies aren’t free. For merchants who want to explore alternatives beyond USPS Cubic, Parcel Select Ground offers shippers a great value, so it’s worth looking into as a substitute for smaller and heavier domestic shipments. Parcel Select Ground offers: 

  • An estimated delivery window of 2-5 days 
  • A service for shipments up to 20 pounds 
  • Uses the Commerical rates with your Stamps.com account 

How will the 2023 changes impact international shipping?

The biggest change to international shipments will involve your Canadian packages. Similar to the US Zones, Canada was previously broken down into 8 different pricing groups. Now, all of Canada will fall under Pricing Group 1. Also, USPS will change Turkey to Turkiye, so don’t be alarmed if the spelling of the country is updated on your labels to reflect this update. 

How can Stamps.com help?

In our recent study, 30.3% of customers stated that delivery costs were the most important factor in deciding whether or not they’d purchase from a business; the second most important factor was the speed of delivery. Rising USPS costs could mean raising shipping costs for your customers. However, you can still enjoy the discounted shipping rates included with your Stamps.com account to help offset these costs. 

Start your free 30-day trial today on Stamps.com.

Stamps.com Offers New, Lower USPS® Shipping Rates

October 19th, 2022 Comments off
Learn how Stamps.com is now offering the lowest USPS rates in the industry.

Stamps.com today announces the next phase of its decades-long partnership with the United States Post Office (USPS). In a renewed, direct agreement between the USPS and Stamps.com’s parent company, Auctane, we can now offer our customers lower shipping rates than ever before. 

What are the new USPS rates?

Our new agreement with USPS gives our valued customers the lowest USPS rates in the industry. Users can now expect savings of up to 84% off retail rates and up to 15% off Commercial Plus Pricing (CPP) on Priority Mail®. Stamps.com offers all the mail classes and delivery services of USPS right from the convenience of your computer.

When will rates go into effect? 

The new USPS rates have gone into effect as of October 19, 2022. Stamps.com customers automatically have access to these new rates. They do not need to take any steps to access them. 

Holiday Surcharges

In addition to automatically getting discounted rates, customers can (thankfully!) avoid high holiday surcharges this season. One thing to note, these holiday surcharges don’t apply to the weight and zone prices at CPP. But if it’s below CPP, you can avoid these surcharges!

What does this mean for Stamps.com customers?

As a Stamps.com customer, our renewed agreement with USPS gives you more savings on shipping costs than ever before. We want to ensure that our customers can manage their shipping operations efficiently, and our new agreement with USPS is another way we’ll continue to keep your shipping process running smoothly.

Categories: USPS News Tags:

USPS Delivery Service Suspension to China

January 28th, 2022 Comments off

The U.S. Postal Service has TEMPORARILY suspended Priority Mail International delivery to China as of Friday, January 28, 2022 due to transportation issues.

If your Priority Mail International parcel is already in transit, the USPS will transport the parcel to China and delivery is expected to be delayed. For packages entering the mail stream after January 28, 2022, the USPS will endorse the item as “Mail Service Suspended — Return to Sender,” returning the parcel to the sender. The USPS will provide a full refund of the shipping costs paid when service to the country of destination is suspended.

Alternate Delivery Options to China
If you have a shipment you need to send to China during this suspension period, we recommend the following options:

UPS International Shipping: Get discounted rates up to 86% off with no peak surcharge

GlobalPost International Standard: Get door-to-door tracking capabilities to over 200 countries

What is GlobalPost International Standard?
GlobalPost International Standard uses a network of postal carriers which provides a similar service to First Class Package International Service at a lower rate. If you don’t see GlobalPost International Standard as an option in your Stamps.com shipping software, contact Customer Care at 1-888-434-0055 (open Monday to Friday, 6 am to 6 pm PT) to request access to GlobalPost carrier services.

USPS Delivery Suspended to Hong Kong

January 19th, 2022 Comments off

The U.S. Postal Service has TEMPORARILY suspended mail and parcel delivery to Hong Kong due to transportation issues with widespread cancellations and restrictions throughout the Hong Kong territory. Delivery service was suspended starting on Friday, January 14, 2022.

The USPS mailing and shipping disruption includes the following services:

If your parcel is already in transit, either the USPS or Hongkong Post will endorse the item as “Mail Service Suspended — Return to Sender” and then place the package in the mail stream for return. The USPS will provide a full refund of the shipping costs paid when service to the country of destination is suspended.

Alternate Delivery Options to Hong Kong
If you have a shipment you need to send to Hong Kong during this suspension period, we recommend the following options:

What is GlobalPost International Standard?
GlobalPost International Standard uses a network of postal carriers which provides a similar service to First Class Package International Service at a lower rate. If you don’t see GlobalPost International Standard as an option in your Stamps.com shipping software, contact Customer Care at 1-888-434-0055 (open Monday to Friday, 6 am to 6 pm PT) to request access to GlobalPost carrier services.

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